President of the European Investment Bank: We Cannot Collaborate with Iran

About two weeks after members of the European Parliament voted on a proposal allowing the European Investment Bank to collaborate with Iran, the president of this bank announced that it prefers not to invest in Iran. According to Reuters, Werner Hoyer, the president of the European Investment Bank, stated that the bank would jeopardize its global operations by investing in Iran. He added that while he supports the EU's efforts to preserve the 2015 nuclear agreement with Iran, Iran is a place where 'we cannot play an active role.' The European Investment Bank is the main lending arm of the EU, and according to Reuters, it fears that its cooperation with Iran could jeopardize its ability to access capital in U.S. markets, leading to widespread consequences for the financial institution's transactions. Mr. Hoyer reported that the bank is indebted by 500 billion euros (580.80 billion dollars) in bonds. Speaking at a press conference at the European Commission, Werner Hoyer stated, 'There is no European bank that can currently work in and with Iran.' He further mentioned that if the bank becomes active in Iran, its 'business model' would be at risk. The European Investment Bank is currently avoiding participation in sectors that the FATF, a global group of governmental anti-money laundering organizations, has listed as high-risk, which includes Iran. Previously, on July 14, it was announced that members of the European Parliament had voted on a proposal allowing the European Investment Bank to collaborate with Iran, but this decision is 'not binding.' The bank's opposition to collaborating with Iran comes as it was announced that following the exit of Donald Trump's administration from the JCPOA and the re-imposition of U.S. sanctions against Tehran, the European Investment Bank was supposed to play a 'key role' in the EU's efforts to maintain financial and trade relations with Iran. Reportedly, the pillars of the EU's strategy to preserve the JCPOA include lending from the European Investment Bank, special measures to protect EU companies from U.S. secondary sanctions (blocking regulations), and the proposal that EU governments resort to direct money transfers to Iran's central bank to avoid U.S. penalties. Now, with the announcement of the European Investment Bank's avoidance of cooperation with Iran, one of the main pillars of this strategy collapses. Iran has stated that if the economic benefits outlined in the JCPOA, including oil sales, are not realized, it may exit the JCPOA. In contrast, the U.S. aims to reduce Iran's oil exports to zero, and with the return of its extraterritorial sanctions, financial exchanges with Iran will face many challenges. Donald Trump exited the JCPOA in May following repeated criticisms of the nuclear agreement with Iran. The U.S. withdrawal from this agreement has posed a fundamental challenge to the future of the JCPOA.